A new Bitcoin improvement proposal, known as BIP-361, aims to conserve a significant portion of the cryptocurrency’s supply, potentially preserving over 7 million coins valued at approximately $536 billion. The proposal intends to freeze Bitcoin that does not transition to quantum-resistant addresses, addressing the looming threat posed by advancements in quantum computing.
However, Charles Hoskinson, the founder of Cardano, has raised concerns about the effectiveness of the initiative, asserting that it would still leave around 1.7 million coins—and a staggering $127 billion—vulnerable to quantum attacks. The proposal encompasses a multi-phase approach to phase out outdated signature schemes on the Bitcoin network. The initial phase would restrict inflows to susceptible addresses, followed by the freezing of legacy coins. The final phase aims to facilitate the recovery of Bitcoin that fails to transition by specified deadlines.
Hoskinson has strongly criticized the assertion that a final recovery phase would safeguard all vulnerable coins, stating, “That’s a lie.” He emphasized that while some of the 8 million Bitcoin could be recoverable, the 1.7 million coins—primarily those predating the introduction of BIP-39 in 2013—would not be subject to recovery. This includes a substantial portion believed to belong to Bitcoin’s enigmatic creator, Satoshi Nakamoto, whose holdings are estimated to be worth about $82 billion.
Despite expressing skepticism, Hoskinson acknowledged the necessity of the proposal. “It’s not a bad proposal,” he stated, emphasizing that it is a proactive measure against the inevitable risk of theft in the 2030s brought on by quantum threats. The term “Q-Day” has emerged in discussions about the impending capability of quantum computers to breach Bitcoin’s cryptographic defenses. In March, Google set a 2029 deadline for adapting its systems to accommodate post-quantum cryptography, highlighting the urgency surrounding this issue.
Further, Hoskinson critiqued the Bitcoin community’s resistance to innovation, particularly compared to other blockchain platforms. He suggested that the introduction of on-chain governance, which enables communities to adapt and implement changes more effectively, could lead to better outcomes. “If you had on-chain governance, you could solve it,” he argued, alluding to systems in place in networks like Cardano, Polkadot, and Tezos. With a touch of sarcasm, he remarked on the reluctance of Bitcoin enthusiasts to embrace such ideas, suggesting that they regard their perspectives as superior.
As the debate around BIP-361 continues, the broader implications for the future of Bitcoin in an era facing quantum threats remain a significant concern for developers and investors alike.
